Controlling – an empirical study and proposal of a relevant model for sustainable business and development in Slovakia
Abstract
The economic crisis triggered by the COVID-19 pandemic suggests that enterprises should manage their business in the wider system of public, social and environmental relations. Sustainable socially responsible business is becoming a lifeline for enterprises, they need to make the most effective decisions about the future direction. This can be achieved by interconnection of sustainable socially responsible business and controlling. Following the empirical survey research carried out using 151 Slovak enterprises the maturity of enterprises concerning the use of controlling and its financial, investment, cost, quality and personnel controlling subsystems was defined. Fisher’s f-test was used for Three-factor analysis of variance questions. The results achieved in the research showing significant differences between analyzed categories of enterprises in terms of size and their subject of business. Based on the analyses of the secondary sources and on results of the research, a framework concept of the structure of corporate controlling for Slovak enterprises was proposed which represents an innovative sustainable business model in practice, the application of which in practice will be a prerequisite for the growth of performance and financial health of enterprises.
Keyword : controlling, socially responsible business, business model, development of enterprises, innovative and sustainable business, Slovak business environment
How to Cite
Sedliačiková, M., Moresová, M., Malá, D., & Rowland , Z. (2021). Controlling – an empirical study and proposal of a relevant model for sustainable business and development in Slovakia. Journal of Business Economics and Management, 22(5), 1252-1268. https://doi.org/10.3846/jbem.2021.15393
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Břečková, P., & Havlíček, K. (2013). Leaders management and personnel controlling in SMEs. European Research Studies, 16, 3–13. https://doi.org/10.35808/ersj/399
Cek, K., & Eyupoglu, S. (2020). Does environmental, social and governance performance influence economic performance? Journal of Business Economics and Management, 21(4), 1165–1184. https://doi.org/10.3846/jbem.2020.12725
Chaudhuri, S., Dayal, U., & Narasayya, V. (2011). An overview of business intelligence technology. Communications of the ACM Magazine, 54(8), 88–98. https://doi.org/10.1145/1978542.1978562
Crowther, D., & Aras, G. (2008). Corporate social responsibility. Ventus Publishing ApS.
Dahlsrud, A. (2008). How corporate social responsibility is defined: An analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15, 1–13. https://doi.org/10.1002/csr.132
Ding, W., Levine, R., Lin, C., & Xie, W. (2021). Corporate immunity to the COVID-19 pandemic. Journal of Financial Economics, 141(2), 802–830. https://doi.org/10.1016/j.jfineco.2021.03.005
Dobers, P., & Wolff, R. (2000). Competing with soft issues – from managing the environment to sustainable business strategies. Business Strategy and the Environment, 9, 143–150. https://doi.org/10.1002/(SICI)1099-0836(200005/06)9:3<143::AID-BSE239>3.0.CO;2-C
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Feldbauer-Durstmüller, B., & Hiebl, M. R. W. (2015). Aktuelle Trends und Entwicklungen im Controlling in und für KMU: Eine Einführung der Gastherausgeber. ZfKE – Zeitschrift für KMU und Entrepreneurship, 63(3–4), 193–208. https://doi.org/10.3790/zfke.63.3-4.193
Hitka, M., Ližbetinová, L., Schmidtová, J., Balážová, Ž., Lorincová, S., Štarchoň, P, Kucharčíková, A., & Sedliačiková, M. (2018). How to manage careers in Slovak small and medium-sized woodprocessing enterprises. BioResources, 13, 6300–6320. https://doi.org/10.15376/biores.13.3.6300-6320
Hitka, M., Potkány, M., & Benková, E. (2007). The analysis of motivation factors of wood-working enterprise employees in the field of personnel controlling. Drewno, 50, 90–105.
Jelacic, D., Šatanová, A., Sedliačiková, M., Závadský, J., & Závadská, Z. (2015). Process model of quality cost monitoring for small and medium wood-processing enterprises. Drvna Industrija, 66, 329–338. https://doi.org/10.5552/drind.2015.1437
Kaščáková, A., & Nedelová, G. (2014). Dotazníkový prieskum II. – overovanie hypotéz. Forum Statisticum Slovacum: vedecký recenzovaný časopis Slovenskej štatistickej a demografickej spoločnosti, 10, 109–114.
Krastev, B. L. (2019). Theoretic aspects of financial controlling in the firm. In Economic Archive (pp. 17–27).
Krechowicz, M., & Kiliańska, K. (2021). Risk and opportunity assessment model for CSR initiatives in the face of Coronavirus. Sustainability, 13(11), 6177. https://doi.org/10.3390/su13116177
Laval, V., & Stefea, P. (2018). The competitive challenge of controlling. Procedia – Social and Behavioral Sciences, 238, 624–631. https://doi.org/10.1016/j.sbspro.2018.04.043
Lu, J., Ren, L., Zhang, Ch., Liang, M., Abrhám, J., & Streimikis, J. (2020). Assessment of corporate social responsibility performance and state promotion policies: a case study of the Baltic states. Journal of Business Economics and Management, 21(4), 1203–1224. https://doi.org/10.3846/jbem.2020.12738
Magrizos, S., Apospori, E., Carringan, M., & Jones, R. (2021). Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis. European Management Journal, 39(2), 291–303. https://doi.org/10.1016/j.emj.2020.06.002
Malá, D., Sedliačiková, M., Drábek, J., Jelačič, D., & Minárová, M. (2019). Consumer perception of environmentally sustainable products of Slovak wood processing enterprises. Drvna Industrija: znanstveni časopis za pitanja drvne technologije, 70(4), 407–418. https://doi.org/10.5552/drvind.2019.1922
Malá, D., Sedliačiková, M., Dušak, M., Kaščáková, A., Musová., & Klementová, J. (2017). Green logistics in the context of sustainable development in small and medium enterprises. Drvna Industrija: znanstveni časopis za pitanja drvne technologije, 68(1), 69–79. https://doi.org/10.5552/drind.2017.1620
Malesios, Ch., De, D., Moursellas, A., Kumar Dey, P., & Evanelions, K. (2021). Sustainability performance analysis of small and medium sized enterprises: criteria, methods and framework. SocioEconomic Planning Sciences, 75, 100993. https://doi.org/10.1016/j.seps.2020.100993
Matten, D., & Moon, J. (2008). “Implicit” and “exprilicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33, 404–424. https://doi.org/10.5465/amr.2008.31193458
Muntean, M. (2018). Business intelligence issues for sustainability projects. Sustainability, 10(2), 335. https://doi.org/10.3390/su10020335
Osmanagić-Bedenik, N. (2015). The challenge of controlling. International Journal of Industrial Engineering and Management, 6, 153–163.
Písař, P., & Kupec, V. (2019). Innovative controlling and audit – opportunities for SMEs. Problems and Perspectives in Management, 17, 184–195. https://doi.org/10.21511/ppm.17(3).2019.15
Potkány, M., & Kováč, R. (2015). The complexity of offered FM services in the Slovak business environment. Procedia Economics and Finance, 34, 535–541. https://doi.org/10.1016/S2212-5671(15)01665-2
Rausch, A., Osmanagić-Bedenik, N., Fafaliou, I., Labas, D., & Porada-Rochon, M. (2013). Controlling and sustainability: Empirical evidence from Europe. Zagreb International Review of Economics and Business, 16, 37–63.
Riemenschneider, C. K., Harrison, D. A., & Mykytyn, P. P. (2003). Understanding it adoption decisions in small business: Integrating current theories. Information & Management, 40(4), 269–285. https://doi.org/10.1016/S0378-7206(02)00010-1
Ropega, J. (2011). The reasons and symptoms of failure in SME. International Advances in Economic Research, 17, 476–483. https://doi.org/10.1007/s11294-011-9316-1
Sedliačiková, M., Hajdúchová, I., Krištofík, P., Viszlai, I., & Gaff, M. (2016). Improving the performance of small and medium wood-processing enterprises. BioResources, 11, 439–450. https://doi.org/10.15376/biores.11.1.439-450
Sedliačiková, M., Stroková, Z., Drábek, J., & Malá, D. (2019). Controlling implementation: What are the benefits and barriers for employees of wood processing enterprises? Acta facultatis xylologiae Zvolen, 61, 163–173.
Sedliačiková, M., Stroková, Z., Hitka, M., & Nagyová, N. (2020). Employees versus implementing controlling into the business practice. Entrepreneurship and Sustainability Issues, 7, 1527–1540. https://doi.org/10.9770/jesi.2020.7.3(7)
Sedliačiková, M., Šatanová, A., & Foltínová, A. (2012). Financial controlling in theory and praxis of small and medium-size enterprises. Journal of Economics, 60, 949–966.
Sedliačiková, M., Vacek, V., & Sopková, E. (2015). How Slovak small and medium enterprises perceive financial controlling. Procedia Economics and Finance, 26, 82–85. https://doi.org/10.1016/S2212-5671(15)00842-4
Stańczyk, I., & Stuss, M. M. (2018). Personell controlling – Human of capital management. Results of a selected enterprise listed on Warsaw stock exchange. International Journal of Contemporary Management, 17, 241–260. https://doi.org/10.4467/24498939IJCM.18.033.9629
Šabíková, I. (2018). Importance of eco-innovation in the context of green growth [Conference presentation]. 12th International Scientific Conference: Innovation Standardization and European Policy in the Context of Sustainable Development Goals. Faculty of economics, Banská Bystrica.
Šatanová, A., & Potkány, M. (2004). Controlling – možnosť ekonomického úspechu hospodárskej politiky. Ekonomický časopis: časopis pre ekonomickú teóriu, hospodársku politiku, spoločenskoekonomické prognózovanie, 2, 148–165.
Štrukelj, T., Nikolić, J., Zlatanovič, D. & Sternad Zabukovšek, S. (2020). A strategic model for sustainable business policy development. Sustainability, 12(2), 526. https://doi.org/10.3390/su12020526
Todorović-Dudić, A., Stanišić, M., & Perović, V. (2017). Contribution of controlling to business efficiency. Industrija, 45, 25–44. https://doi.org/10.5937/industrija45-11003
Alshammari, M. (2015). Corporate social re sponsibility and firm performance. International Journal of Business and Management, 10, 15–28. https://doi.org/10.5539/ijbm.v10n6p15
Ashrafi, M., Magnam, G. M., Adams, M., & Walker, T. R. (2020). Understanding the conceptual evolutionary path and theoretical underpinnings of corporate social responsibility and corporate sustainability. Sustainability, 12, 760. https://doi.org/10.3390/su12030760
Beaver, G. (2003). Small business: success and failure. Strategic Change, 12(3), 115–122. https://doi.org/10.1002/jsc.624
Belas, J., Gavurova, B., Kubalek, J., & Kubak, M. (2020). Discrepancies in perception and evaluation of macroenvironment – sectoral analysis. Journal of Business Economics and Management, 21(4), 1072–1092. https://doi.org/10.3846/jbem.2020.12274
Berens, W., & Wuller, F. (2007). Strategisches controlling in KMU: Bedeutung, Umsetzungsstand und edv-technische Unterstutzung. Controlling, 19(7), 393–404. https://doi.org/10.15358/0935-0381-2007-7-393
Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state of the art and steps towards a research agenda. Journal of Cleaner Production, 45, 9–19. https://doi.org/10.1016/j.jclepro.2012.07.007
Boubakri, N., El Ghoul, S., Guedhami, O., Wang, H. (2021). Corporate social responsibility in emerging market economies: Determinants, consequences, and future research directions. Emerging Markets Review, 46, 100758. https://doi.org/10.1016/j.ememar.2020.100758
Břečková, P., & Havlíček, K. (2013). Leaders management and personnel controlling in SMEs. European Research Studies, 16, 3–13. https://doi.org/10.35808/ersj/399
Cek, K., & Eyupoglu, S. (2020). Does environmental, social and governance performance influence economic performance? Journal of Business Economics and Management, 21(4), 1165–1184. https://doi.org/10.3846/jbem.2020.12725
Chaudhuri, S., Dayal, U., & Narasayya, V. (2011). An overview of business intelligence technology. Communications of the ACM Magazine, 54(8), 88–98. https://doi.org/10.1145/1978542.1978562
Crowther, D., & Aras, G. (2008). Corporate social responsibility. Ventus Publishing ApS.
Dahlsrud, A. (2008). How corporate social responsibility is defined: An analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15, 1–13. https://doi.org/10.1002/csr.132
Ding, W., Levine, R., Lin, C., & Xie, W. (2021). Corporate immunity to the COVID-19 pandemic. Journal of Financial Economics, 141(2), 802–830. https://doi.org/10.1016/j.jfineco.2021.03.005
Dobers, P., & Wolff, R. (2000). Competing with soft issues – from managing the environment to sustainable business strategies. Business Strategy and the Environment, 9, 143–150. https://doi.org/10.1002/(SICI)1099-0836(200005/06)9:3<143::AID-BSE239>3.0.CO;2-C
European Commission Directive No. 2003/361/EC. (2003). Commission recommendation of 6 May 2003 concerning the definition of micro, small and medium sized enterprises. https://eur-lex.europa.eu
Feldbauer-Durstmüller, B., & Hiebl, M. R. W. (2015). Aktuelle Trends und Entwicklungen im Controlling in und für KMU: Eine Einführung der Gastherausgeber. ZfKE – Zeitschrift für KMU und Entrepreneurship, 63(3–4), 193–208. https://doi.org/10.3790/zfke.63.3-4.193
Hitka, M., Ližbetinová, L., Schmidtová, J., Balážová, Ž., Lorincová, S., Štarchoň, P, Kucharčíková, A., & Sedliačiková, M. (2018). How to manage careers in Slovak small and medium-sized woodprocessing enterprises. BioResources, 13, 6300–6320. https://doi.org/10.15376/biores.13.3.6300-6320
Hitka, M., Potkány, M., & Benková, E. (2007). The analysis of motivation factors of wood-working enterprise employees in the field of personnel controlling. Drewno, 50, 90–105.
Jelacic, D., Šatanová, A., Sedliačiková, M., Závadský, J., & Závadská, Z. (2015). Process model of quality cost monitoring for small and medium wood-processing enterprises. Drvna Industrija, 66, 329–338. https://doi.org/10.5552/drind.2015.1437
Kaščáková, A., & Nedelová, G. (2014). Dotazníkový prieskum II. – overovanie hypotéz. Forum Statisticum Slovacum: vedecký recenzovaný časopis Slovenskej štatistickej a demografickej spoločnosti, 10, 109–114.
Krastev, B. L. (2019). Theoretic aspects of financial controlling in the firm. In Economic Archive (pp. 17–27).
Krechowicz, M., & Kiliańska, K. (2021). Risk and opportunity assessment model for CSR initiatives in the face of Coronavirus. Sustainability, 13(11), 6177. https://doi.org/10.3390/su13116177
Laval, V., & Stefea, P. (2018). The competitive challenge of controlling. Procedia – Social and Behavioral Sciences, 238, 624–631. https://doi.org/10.1016/j.sbspro.2018.04.043
Lu, J., Ren, L., Zhang, Ch., Liang, M., Abrhám, J., & Streimikis, J. (2020). Assessment of corporate social responsibility performance and state promotion policies: a case study of the Baltic states. Journal of Business Economics and Management, 21(4), 1203–1224. https://doi.org/10.3846/jbem.2020.12738
Magrizos, S., Apospori, E., Carringan, M., & Jones, R. (2021). Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis. European Management Journal, 39(2), 291–303. https://doi.org/10.1016/j.emj.2020.06.002
Malá, D., Sedliačiková, M., Drábek, J., Jelačič, D., & Minárová, M. (2019). Consumer perception of environmentally sustainable products of Slovak wood processing enterprises. Drvna Industrija: znanstveni časopis za pitanja drvne technologije, 70(4), 407–418. https://doi.org/10.5552/drvind.2019.1922
Malá, D., Sedliačiková, M., Dušak, M., Kaščáková, A., Musová., & Klementová, J. (2017). Green logistics in the context of sustainable development in small and medium enterprises. Drvna Industrija: znanstveni časopis za pitanja drvne technologije, 68(1), 69–79. https://doi.org/10.5552/drind.2017.1620
Malesios, Ch., De, D., Moursellas, A., Kumar Dey, P., & Evanelions, K. (2021). Sustainability performance analysis of small and medium sized enterprises: criteria, methods and framework. SocioEconomic Planning Sciences, 75, 100993. https://doi.org/10.1016/j.seps.2020.100993
Matten, D., & Moon, J. (2008). “Implicit” and “exprilicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33, 404–424. https://doi.org/10.5465/amr.2008.31193458
Muntean, M. (2018). Business intelligence issues for sustainability projects. Sustainability, 10(2), 335. https://doi.org/10.3390/su10020335
Osmanagić-Bedenik, N. (2015). The challenge of controlling. International Journal of Industrial Engineering and Management, 6, 153–163.
Písař, P., & Kupec, V. (2019). Innovative controlling and audit – opportunities for SMEs. Problems and Perspectives in Management, 17, 184–195. https://doi.org/10.21511/ppm.17(3).2019.15
Potkány, M., & Kováč, R. (2015). The complexity of offered FM services in the Slovak business environment. Procedia Economics and Finance, 34, 535–541. https://doi.org/10.1016/S2212-5671(15)01665-2
Rausch, A., Osmanagić-Bedenik, N., Fafaliou, I., Labas, D., & Porada-Rochon, M. (2013). Controlling and sustainability: Empirical evidence from Europe. Zagreb International Review of Economics and Business, 16, 37–63.
Riemenschneider, C. K., Harrison, D. A., & Mykytyn, P. P. (2003). Understanding it adoption decisions in small business: Integrating current theories. Information & Management, 40(4), 269–285. https://doi.org/10.1016/S0378-7206(02)00010-1
Ropega, J. (2011). The reasons and symptoms of failure in SME. International Advances in Economic Research, 17, 476–483. https://doi.org/10.1007/s11294-011-9316-1
Sedliačiková, M., Hajdúchová, I., Krištofík, P., Viszlai, I., & Gaff, M. (2016). Improving the performance of small and medium wood-processing enterprises. BioResources, 11, 439–450. https://doi.org/10.15376/biores.11.1.439-450
Sedliačiková, M., Stroková, Z., Drábek, J., & Malá, D. (2019). Controlling implementation: What are the benefits and barriers for employees of wood processing enterprises? Acta facultatis xylologiae Zvolen, 61, 163–173.
Sedliačiková, M., Stroková, Z., Hitka, M., & Nagyová, N. (2020). Employees versus implementing controlling into the business practice. Entrepreneurship and Sustainability Issues, 7, 1527–1540. https://doi.org/10.9770/jesi.2020.7.3(7)
Sedliačiková, M., Šatanová, A., & Foltínová, A. (2012). Financial controlling in theory and praxis of small and medium-size enterprises. Journal of Economics, 60, 949–966.
Sedliačiková, M., Vacek, V., & Sopková, E. (2015). How Slovak small and medium enterprises perceive financial controlling. Procedia Economics and Finance, 26, 82–85. https://doi.org/10.1016/S2212-5671(15)00842-4
Stańczyk, I., & Stuss, M. M. (2018). Personell controlling – Human of capital management. Results of a selected enterprise listed on Warsaw stock exchange. International Journal of Contemporary Management, 17, 241–260. https://doi.org/10.4467/24498939IJCM.18.033.9629
Šabíková, I. (2018). Importance of eco-innovation in the context of green growth [Conference presentation]. 12th International Scientific Conference: Innovation Standardization and European Policy in the Context of Sustainable Development Goals. Faculty of economics, Banská Bystrica.
Šatanová, A., & Potkány, M. (2004). Controlling – možnosť ekonomického úspechu hospodárskej politiky. Ekonomický časopis: časopis pre ekonomickú teóriu, hospodársku politiku, spoločenskoekonomické prognózovanie, 2, 148–165.
Štrukelj, T., Nikolić, J., Zlatanovič, D. & Sternad Zabukovšek, S. (2020). A strategic model for sustainable business policy development. Sustainability, 12(2), 526. https://doi.org/10.3390/su12020526
Todorović-Dudić, A., Stanišić, M., & Perović, V. (2017). Contribution of controlling to business efficiency. Industrija, 45, 25–44. https://doi.org/10.5937/industrija45-11003